Questionnaire Study: Gathering Information and Insights from Audiences Through a Series of Questions - Numerous individuals profit from a unique financial arrangement designed to offset the impact of rising prices.
In an effort to combat the raging inflation, approximately half of Germany's workforce got a bonus from their employers last year. Nevertheless, a study conducted by YouGov and sponsored by Teambank in Nuremberg revealed that 21% of these recipients saw no significant change in their financial situation as a result of the inflation adjustment. On the brighter side, 26% confirmed that the incentive positively impacted them.
Inflation adjustment is a voluntary arrangement whereby employers give out extra cash above the usual remuneration, in one lump sum or as installments. This compensation, tax-free and free from social security contributions, is valid from October 26, 2022, until December 31, 2024, up to a maximum sum of 3,000 euros.
The benefits of inflation adjustment are not uniformly distributed among the employees. The data pointed out that households with higher disposable incomes, specifically those earning over 4,000 euros per month, were more likely to have received this bonus. In contrast, only 30% of those with less than 2,000 euros per month reportedly received the same payment. This survey included responses from 1,751 German employees in the age bracket of 18-79 years old, collected in the current year's February.
The start of the Russian invasion of Ukraine in February 2022 triggered a rise in energy and food prices, resulting in a rise in overall inflation. Germany had an average inflation of 6.9% in 2022. The inflation rate dropped a little to 5.9% in 2023, holding the second-highest level since reunion. Inflation decreases purchasing power, making consumers unable to buy as much with a euro.
A quarter of employees (27%) stored their tax-free bonus to safeguard themselves from the escalating energy and heating expenses. About an equal number (26%) utilized it to maintain their standard of living. Approximately 21% deliberately saved the additional money to fulfill their desires.
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The unique financial arrangement to combat rising prices, known as inflation adjustment, was first implemented in October 2022 and will last until the end of 2024. Despite the inflation compensation, many consumers in Frankfurt and across Germany are still struggling with inflation, as seen in the average inflation rate of 6.9% in 2022. Many employers in Nuremberg offered this inflation adjustment to their employees, with households earning over 4,000 euros per month more likely to receive it. Banks in Germany, such as Teambank, are playing a role in this situation by sponsoring studies on the impact of inflation adjustment on consumers. According to a survey conducted by YouGov, approximately 27% of employees chose to save their tax-free inflation adjustment bonus to manage escalating energy and heating expenses.
